Proposed Collection; Comment Request, 68849-68850 [E6-20055]
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Federal Register / Vol. 71, No. 228 / Tuesday, November 28, 2006 / Notices
Section 213.3339 United States
International Trade Commission
TCGS00012 Confidential Assistant to a
Commissioner. Effective September
20, 2006.
Section 213.3384 Department of
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DUGS60338 Special Policy Advisor to
the Assistant Secretary for Housing,
Federal Housing Commissioner.
Effective September 13, 2006.
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and Intergovernmental Relations.
Effective September 20, 2006.
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Assistant Secretary for
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NHGS60077 Senior Advisor to the
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2006.
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Dan G. Blair,
Deputy Director.
[FR Doc. 06–9434 Filed 11–27–06; 8:45 am]
BILLING CODE 6325–39–M
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon written request, copies available
from: Securities and Exchange
Commission, Office of Filings and
Information Services, Washington, DC
20549.
ycherry on PROD1PC61 with NOTICES
Extension: Rule 12b–1, SEC File No. 270–
188, OMB Control No. 3235–0212.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collections of information
summarized below. The Commission
plans to submit these existing
collections of information to the Office
of Management and Budget (‘‘OMB’’) for
extension and approval.
Rule 12b–1 (17 CFR 270.12b–1)
permits a registered open-end
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15:42 Nov 27, 2006
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investment company (‘‘mutual fund’’) to
distribute its own shares and pay the
expenses of distribution out of the
mutual fund’s assets provided, among
other things, that the mutual fund
adopts a written plan (‘‘Rule 12b–1
plan’’) and has in writing any
agreements relating to the
implementation of the Rule 12b–1 plan.
The rule in part requires that (i) the
adoption or material amendment of a
Rule 12b–1 plan be approved by the
mutual fund’s directors and
shareholders; (ii) the board review
quarterly reports of amounts spent
under the Rule 12b–1 plan; and (iii) the
board consider continuation of the Rule
12b–1 plan at least annually. Rule 12b–
1 also requires funds relying on the rule
to preserve for six years, the first two
years in an easily accessible place,
copies of the Rule 12b–1 plan, related
agreements and reports, as well as
minutes of board meetings that describe
the factors considered and the basis for
adopting or continuing a Rule 12b–1
plan.
The board and shareholder approval
requirements of Rule 12b–1 are
designed to ensure that fund
shareholders and directors receive
adequate information to evaluate and
approve a Rule 12b–1 plan. The
requirement of quarterly reporting to the
board is designed to ensure that the
Rule 12b–1 plan continues to benefit the
fund and its shareholders. The
recordkeeping requirements of the rule
are necessary to enable Commission
staff to oversee compliance with the
rule.
The number of hours required to
comply with Rule 12b–1 will vary
considerably depending on several
factors, including the complexity of the
plan and the number of classes of fund
shares covered by the plan, and is
expected to be higher in the first year
following adoption of the proposed
amendments than in subsequent years.
Based on information filed with the
Commission by funds, Commission staff
estimates that there are approximately
6,536 mutual fund portfolios with Rule
12b–1 plans.
Rule 12b–1 requires the board of each
fund with a Rule 12b–1 plan to (i)
review quarterly reports of amounts
spent under the plan, (ii) annually
consider the plan’s continuation (which
generally is combined with the fourth
quarterly review), (iii) have each fund
document the policies and procedures it
has implemented to enable it to effect
portfolio securities transactions through
an executing broker that also distributes
the fund’s shares, and (iv) approve those
policies and procedures.
PO 00000
Frm 00056
Fmt 4703
Sfmt 4703
68849
The number of annual responses per
fund portfolio will be four per year.
Thus, there will be an estimated 26,144
industry responses (6,536 fund
portfolios × 4 responses per fund
portfolio= 26,144 responses) in the first
year and in each subsequent year. Thus,
we estimate that there will be an average
of 26,144 industry responses per year
over the three year period for which we
are requesting approval of the
information collection burden.
Based on conversations with fund
industry representatives, Commission
staff estimates that for each of the 6,536
mutual fund portfolios that currently
have a Rule 12b–1 plan, the average
annual burden of complying with the
rule is 100 hours to maintain the plan.
This estimate takes into account the
time needed to prepare quarterly reports
to the board of directors, the board’s
consideration of those reports, and the
board’s annual consideration of the
plan’s continuation. The total burden
hours per year for all fund portfolios to
comply with current information
collection requirements under Rule
12b–1, therefore, is estimated to be
653,600 hours (6,536 fund portfolios ×
100 hours per fund portfolio = 653,600
hours). The annual cost of the hourly
burden per fund under the rule is
estimated to be $11,135.00. Thus, we
estimate that the total annual cost to all
funds of the Rule 12b–1 hour burden is
$72,778,360.00 (6,536 fund portfolios
with Rule 12b–1 plans × $11,135.00 per
fund portfolio = $72,778,360.00).
If a currently operating fund seeks to
(i) adopt a new Rule 12b–1 plan or (ii)
materially increase the amount it spends
for distribution under its Rule 12b–1
plan, Rule 12b–1 requires that the fund
obtain shareholder approval. As a
consequence, the fund will incur the
cost of a proxy. Based on conversations
with fund industry representatives,
Commission staff estimates that
approximately three funds per year
prepare a proxy in connection with the
adoption or material amendment of a
Rule 12b–1 plan. The staff further
estimates that the cost of each fund’s
proxy is $30,000. Thus the total annual
cost burden of Rule 12b–1 to the fund
industry is $90,000 (3 funds requiring a
proxy × $30,000 per proxy).
The collections of information
required by Rule 12b–1 are necessary to
obtain the benefits of the rule. Notices
to the Commission will not be kept
confidential. An agency may not
conduct or sponsor, and a person is not
required to respond to a collection of
information unless it displays a
currently valid control number.
Written comments are invited on: (a)
Whether the proposed collection of
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68850
Federal Register / Vol. 71, No. 228 / Tuesday, November 28, 2006 / Notices
Dated: November 20, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6–20055 Filed 11–27–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54795; File No. SR–BSE–
2006–44]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Amend the
Existing BSE Fee Schedules
November 20, 2006.
ycherry on PROD1PC61 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
20, 2006, the Boston Stock Exchange,
Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been prepared by the BSE. The
BSE has designated this proposal as one
changing a due, fee, or other charge
under Section 19(b)(3)(A)(ii) of the Act,3
and Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested parties.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
On June 13, 2006, the BSE filed
Amendment No. 3 to SR–BSE–2006–22
(the ‘‘BeX Facility Filing’’), a rule filing
submitted in connection with the
implementation of the first of two
phases of the BeX, a fully automated
electronic book for the display and
execution of orders in securities. On
August 25, 2006, SR–BSE–2006–22 was
approved by the Commission.5 On
August 3, 2006, the BSE filed, in
connection with the implementation of
the second phase of the BeX trading
system and in connection with
satisfying the requirements of
Regulation NMS, SR–BSE–2006–30. On
September 29, 2006, the Commission
approved SR–BSE–2006–30.6
The existing BSE fee schedule will be
amended so as to delete all Transaction
Fees, Electronic File Access and
Processing Fees, and Floor Operation
Fees. The Transaction Fees and
Electronic File Access and Processing
Fees will now be contained in the BeX
fee schedule and, in view of the fact that
there will no longer be a physical
trading floor in the traditional sense
once the transition to the BeX fully
electronic platform occurs, there is no
longer a need for the Floor Operation
Fees. The existing Membership and
Other Fees will remain in their present
form. It should be noted that while BSE
Members will continue to be charged
the Membership and Other Fees, EAMs
will not be charged those fees. That is
due to the fact that, although EAMs and
BSE Members are treated equally, EAMs
do not vote on matters related to
mergers, consolidations, dissolution,
liquidation, transfer or conversion of the
assets of the Exchange and hold nontransferable permits that are solely for
trading on BeX. Therefore, EAMs are not
required to pay the Membership fees
applicable to BSE Members.
The BeX fee schedule reflects the new
fees associated with the services and
products available to BSE Members in
the BeX fully electronic environment.
The primary categories of new fees set
forth in the proposed BeX fee schedule
are: transaction fees, including
regulatory transactions fees; clearing
service fees; facility fees; technology
fees; and connectivity fees. Unless
otherwise indicated on the fee schedule,
all fees are charged on a monthly basis.
The following is a description of the
foregoing categories:
Transaction Fees: Transaction fees in
BeX are broken down based upon share
price and where they are listed, such as
on the Nasdaq Stock Exchange versus
another exchange. For securities listed
on an exchange other than the Nasdaq
that are traded with a share price greater
than or equal to $1.00, the Liquidity
Provider will receive a $0.0023 credit
and the Liquidity Taker will be charged
$0.0028 per share. For securities that are
listed on the Nasdaq that are traded
with a share price equal to or greater
than $1.00, the Liquidity Provider will
receive a $0.0025 credit and the
Liquidity Taker will be charged $0.0028
per share.
If a security is listed on an exchange
other than the Nasdaq and trades with
a share price less than $1.00, the
Liquidity Provider receives a credit in
5 See Securities Exchange Act Release No. 54365
(Aug. 25, 2006), 71 FR 52192 (Sept. 1, 2006).
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to R. Corey Booth, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way,
Alexandria, VA 22312 or send an e-mail
to: PRA_Mailbox@sec.gov.
6 See Securities Exchange Act Release No. 54546
(Sept. 29, 2006), 71 FR 59161 (Oct. 6, 2006).
The purpose of this filing is to amend
the existing BSE fee schedule and to
establish a fee schedule for the Boston
Equities Exchange trading system
(‘‘BeX’’). The amendments to the
existing BSE fee schedule would delete
of fees that are no longer applicable or
that will now be associated with BeX.
The BeX fee schedule reflects the new
fees associated with the services and
products available to BSE Members,
including Electronic Access Members
(‘‘EAMs’’), in the BeX fully electronic
environment. The primary categories of
new fees set forth in the proposed BeX
fee schedule include: transaction fees,
including regulatory transaction fees;
clearing services fees; facility fees;
technology fees; and connectivity fees.
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.bostonstock.com) and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
BSE included statements concerning the
purpose of, and basis for, the proposed
rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The BSE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
2 17
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]]>Agencies
[Federal Register Volume 71, Number 228 (Tuesday, November 28, 2006)]
[Notices]
[Pages 68849-68850]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-20055]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon written request, copies available from: Securities and Exchange
Commission, Office of Filings and Information Services, Washington, DC
20549.
Extension: Rule 12b-1, SEC File No. 270-188, OMB Control No. 3235-
0212.
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission
(the ``Commission'') is soliciting comments on the collections of
information summarized below. The Commission plans to submit these
existing collections of information to the Office of Management and
Budget (``OMB'') for extension and approval.
Rule 12b-1 (17 CFR 270.12b-1) permits a registered open-end
investment company (``mutual fund'') to distribute its own shares and
pay the expenses of distribution out of the mutual fund's assets
provided, among other things, that the mutual fund adopts a written
plan (``Rule 12b-1 plan'') and has in writing any agreements relating
to the implementation of the Rule 12b-1 plan. The rule in part requires
that (i) the adoption or material amendment of a Rule 12b-1 plan be
approved by the mutual fund's directors and shareholders; (ii) the
board review quarterly reports of amounts spent under the Rule 12b-1
plan; and (iii) the board consider continuation of the Rule 12b-1 plan
at least annually. Rule 12b-1 also requires funds relying on the rule
to preserve for six years, the first two years in an easily accessible
place, copies of the Rule 12b-1 plan, related agreements and reports,
as well as minutes of board meetings that describe the factors
considered and the basis for adopting or continuing a Rule 12b-1 plan.
The board and shareholder approval requirements of Rule 12b-1 are
designed to ensure that fund shareholders and directors receive
adequate information to evaluate and approve a Rule 12b-1 plan. The
requirement of quarterly reporting to the board is designed to ensure
that the Rule 12b-1 plan continues to benefit the fund and its
shareholders. The recordkeeping requirements of the rule are necessary
to enable Commission staff to oversee compliance with the rule.
The number of hours required to comply with Rule 12b-1 will vary
considerably depending on several factors, including the complexity of
the plan and the number of classes of fund shares covered by the plan,
and is expected to be higher in the first year following adoption of
the proposed amendments than in subsequent years. Based on information
filed with the Commission by funds, Commission staff estimates that
there are approximately 6,536 mutual fund portfolios with Rule 12b-1
plans.
Rule 12b-1 requires the board of each fund with a Rule 12b-1 plan
to (i) review quarterly reports of amounts spent under the plan, (ii)
annually consider the plan's continuation (which generally is combined
with the fourth quarterly review), (iii) have each fund document the
policies and procedures it has implemented to enable it to effect
portfolio securities transactions through an executing broker that also
distributes the fund's shares, and (iv) approve those policies and
procedures.
The number of annual responses per fund portfolio will be four per
year. Thus, there will be an estimated 26,144 industry responses (6,536
fund portfolios x 4 responses per fund portfolio= 26,144 responses) in
the first year and in each subsequent year. Thus, we estimate that
there will be an average of 26,144 industry responses per year over the
three year period for which we are requesting approval of the
information collection burden.
Based on conversations with fund industry representatives,
Commission staff estimates that for each of the 6,536 mutual fund
portfolios that currently have a Rule 12b-1 plan, the average annual
burden of complying with the rule is 100 hours to maintain the plan.
This estimate takes into account the time needed to prepare quarterly
reports to the board of directors, the board's consideration of those
reports, and the board's annual consideration of the plan's
continuation. The total burden hours per year for all fund portfolios
to comply with current information collection requirements under Rule
12b-1, therefore, is estimated to be 653,600 hours (6,536 fund
portfolios x 100 hours per fund portfolio = 653,600 hours). The annual
cost of the hourly burden per fund under the rule is estimated to be
$11,135.00. Thus, we estimate that the total annual cost to all funds
of the Rule 12b-1 hour burden is $72,778,360.00 (6,536 fund portfolios
with Rule 12b-1 plans x $11,135.00 per fund portfolio =
$72,778,360.00).
If a currently operating fund seeks to (i) adopt a new Rule 12b-1
plan or (ii) materially increase the amount it spends for distribution
under its Rule 12b-1 plan, Rule 12b-1 requires that the fund obtain
shareholder approval. As a consequence, the fund will incur the cost of
a proxy. Based on conversations with fund industry representatives,
Commission staff estimates that approximately three funds per year
prepare a proxy in connection with the adoption or material amendment
of a Rule 12b-1 plan. The staff further estimates that the cost of each
fund's proxy is $30,000. Thus the total annual cost burden of Rule 12b-
1 to the fund industry is $90,000 (3 funds requiring a proxy x $30,000
per proxy).
The collections of information required by Rule 12b-1 are necessary
to obtain the benefits of the rule. Notices to the Commission will not
be kept confidential. An agency may not conduct or sponsor, and a
person is not required to respond to a collection of information unless
it displays a currently valid control number.
Written comments are invited on: (a) Whether the proposed
collection of
[[Page 68850]]
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of the burden of the
collection of information; (c) ways to enhance the quality, utility,
and clarity of the information collected; and (d) ways to minimize the
burden of the collection of information on respondents, including
through the use of automated collection techniques or other forms of
information technology. Consideration will be given to comments and
suggestions submitted in writing within 60 days of this publication.
Please direct your written comments to R. Corey Booth, Director/
Chief Information Officer, Securities and Exchange Commission, C/O
Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312 or send
an e-mail to: PRA--Mailbox@sec.gov.
Dated: November 20, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6-20055 Filed 11-27-06; 8:45 am]
BILLING CODE 8011-01-P
